Ratio Analysis

BUS312A

October 15, 2014

LO 10 Identify the major types of financial ratios and what they measure.

Using Ratios to Analyze Performance

Analysts and other interested parties can gather qualitative

information from financial statements by examining relationships

between items on the statements and identifying trends in these

relationships.

APPENDIX 5A Ratio Analysis—A Reference

LO 10 Identify the major types of financial ratios and what they measure.

Illustration 5A-1

A Summary of Financial Ratios

APPENDIX 5A Ratio Analysis—A Reference

Using Ratios

LO 10 Identify the major types of financial ratios and what they measure.

Illustration 5A-1

A Summary of Financial Ratios

APPENDIX 5A Ratio Analysis—A Reference

Using Ratios

LO 10 Identify the major types of financial ratios and what they measure.

Illustration 5A-1

A Summary of Financial Ratios

APPENDIX 5A Ratio Analysis—A Reference

Using Ratios

APPENDIX 5B Financial Statements Template

The following are the traditional financial portions of the annual report:

• Letter to the Stockholders

• Financial Highlights

• Management’s Discussion and Analysis

• Management Certification of Financial Statements

• Management’s Report on Internal Control

• Auditor’s Reports

• Financial Statements

• Notes to the Financial Statements

• Supplementary Financial Information (e.g., 10-year financial summary)